“If you doubt how disastrous a return to Labour-style economics would be, just look at countries currently following that approach,” Mr Cameron says.

“Our recovery is real, but it’s also fragile, and there are more difficult decisions ahead. A return to that economic madness would devastate this country.”

George Osborne, the Chancellor, used his Autumn Statement earlier this month to unveil more optimistic forecasts for economic growth and the deficit

The Centre for Economic and Business Research has also forecast that Britain is on track to overtake France and Germany to become the biggest economy in Europe.

The CEBR said Britain, the sixth biggest economy in the world, will see its GDP grow from £1.59 trillion to £2.64 trillion by 2028.

In the same period, Germany’s output will grow more slowly from £2.2 trillion to £2.69 trillion, with growth hampered by a weak euro, an ageing population and the prospect of future Eurozone bailouts.

It puts Britain on course to surpass Germany by 2030.

Mr Cameron adds: “When we came to office, our economy was on its knees. Three and a half years later, we are turning a corner.

“We see it in the businesses that are opening up, the people who are getting decent jobs, the factories that are making British goods and selling them to the world again. The plan is working.

“That’s why this year, 2014, we are not just going to stick to the plan – we are going to re-double our efforts to deliver every part of it, to benefit the whole country and secure a better future for everyone.”

The Prime Minister will use his New Year message to call on Scottish people to vote to remain a part of the Union.

“And 2014 is also an important date in the history of the United Kingdom,” Mr Cameron says. The referendum vote will be the biggest decision Scotland has ever been asked to make.

“The outcome matters to all of us, wherever we live in the UK. This is not a vote for the next few years, but a vote that could change our country forever.

“Our family of nations is at its best when we work together with shared interest and common purpose.

“This year, let the message go out from England, Wales and Northern Ireland to everyone in Scotland - we want you to stay. And together we can build an even stronger United Kingdom for our children and grandchildren.”